Prison Investigating Francorp's CEO Boroian
Sources Say Boroian Conducts Weekly/Daily Conference Calls in Prison
DULUTH, Minn (Blue MauMau) - An investigation has been triggered by a letter sent to the Bureau of Prisons at Duluth Federal Prison Camp regarding allegations that Francorp's CEO, Donald Boroian, has been conducting business on a regular basis while imprisoned for tax evasion. David Baker, Information Officer of Public Relations, said that because they are investigating the claims, the prison will not be able to discuss anything further. Boroian is serving a twelve month, one day sentence, but in spite of that, according to some close to the business operations, his 30-year old franchise development company, Francorp, seems to be flourishing, in getting new clients.
But with strict policies in place, how can prison authorities be unaware of Boroian conducting weekly or even daily conference calls while he is serving out his sentence? Policy for federal inmates is clearly stated on the federal prison web site:
"Inmates cannot conduct business in prison. An inmate is expected to assign authority for a business or profession to someone else. Occasionally, it may be necessary to make a decision that will substantially affect the assets or prospects of the business. In such cases, the Warden can allow a special visit."
At this time, Boroian is scheduled to be released from prison to a halfway house the first week of April, according to one source, and on June 9 he will be given supervised release for two years as a result of his goo d behavior. For inmate safety reasons, a prison official said they could not confirm his release to a halfway facility, but could confirm the projected release date. According to a court document signed by his warden addressing imprisonment, Boroian surrendered on July 27, 2006 to the Duluth Federal Prison Camp with a certified copy of the judgment. That would make his release date approximately July 28, 2007.
New Challenges Ahead for Boroian
What lies ahead for Boroian and his company when he takes over the helm? Although Francorp has been riddled with numerous federal and state tax liens totaling approximately $2.9 million over the past ten years, it appears some $1.1 million have been "released" or paid, according to the Illinois Cook County of Deeds, leaving approximately $1.8 million as outstanding.
In reviewing one Francorp Federal Tax Lien listed with Cook County, the company owes $706,126 on back taxes for years 2003 to 2006, which is all listed as 941 employment taxes. Tax attorney Alan F. Segal in Chicago explains that this lien only reflects the liability through December 2005, and it looks like Francorp had paid everything it owed through the fourth quarter of 2004. The amounts shown are probably the accrued penalties and interest. He said the 2005 amounts are more significant and look like they were also paid on time, with the company's matching portion. But by now four more quarters have accrued and he said, "For all we know a lien coul d be filed two weeks from now, reflecting liability for 2006."
Segal also explained that in order to work out a payment schedule for its employment taxes a company has to be paid up on at least two or three current quarters. If a company doesn't stay current, the IRS can issue a final notice, stating you have 30 days to file for a due process hearing, to explain why you haven't paid and to work something out. He said, "If you don't file, they can start taking forcible collection action. That means they can go to Francorp's bank accounts and help themselves to whatever is there."
Also, if Francorp gets any kind of fees from clients and the IRS finds out about it, it can file a Notice of Levy to clients, telling them their payments must be paid to the IRS instead of to Francorp. Another problem coul d be for company employees who are considered as responsible officers, those who have power to make company decisions. He said, "The IRS can propose the Trust Fund Recovery Penalty against the responsible officer, which means if an employee makes decisions to pay other companies or people instead of depositing monies into the trust fund, the IRS can go after that person.
Segal said that the IRS will most likely be filing a lien against Boroian at a future date because after the criminal case the IRS will then go after him in a civil action suit. Since he had a plea of guilty he is more than likely on a payment schedule for personal income taxes, which would not be public information. He said, "That is between him and the IRS." But Segal said the plea agreement will state his requirements with making good on the monies that he owes.
The actual plea agreement addresses that Boroian failed to pay a total of $542,000 in taxes during a four-year period, 1997 through 2000. And since his compliance extends throughout an d beyond the period of his sentence, failure to abide by any term of the Agreement will be considered a violation. If a violation does occur, the Government may vacate the plea agreement and prosecute Boroian. As to the Schedule of Payments, they will be applied in this order: 1) assessment, 2) restitution principal, 3) restitution interest, 4) fine principal, 5) community restitution, 6) fine interest, 7) penalties, 8) costs, including cost of prosecution and court cost.
Francorp's Future Could Be Bleak
Now with a fresh prison record for tax evasion attached to his credentials, and with the challenge of juggling old and new tax liabilities and financial obligations, one source thinks that Boroian will have a hard time keeping his Francorp business afloat. Last week, according to the source, another member of its key management team jumped ship and it is rumored that others are looking to do the same. With all that and new rumblings from clients who are less than satisfied with the services they are receiving, what chance will Francorp have? Again, from the source, "Only time will tell."
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Related readings:
Boroian back at Francorp
Don Boroian has been back at Francorp for just about 1 month. I that time, 3 employees, imcluding his executive assitant - whose tenure spanned his entire incarceration, have left the firm. Only one of three gave any notice whatsoever. The other two, including his assistant, gave absolutely no notice, they just quit. The two employees that walked out did so because of direct ethical confrontations with Boroian.
It is shaping up to be quite a summer.
Boroian - Risk to Spread Around
Another great investigative news story. It looks like Boroian has spread risk to everyone.
* Boroian put himself in prison by trying for years to trick the government from taxes owed
* He then puts himself further at risk, as well as unwelcome press to the Duluth Federal Prison, by running his business from his prison cell
* The company he founded, Francorp, is put at risk by having to pay sizable tax liens to the IRS
* Francorp's clients are at risk to pay what they owe to Francorp immediately when notified by the IRS
* And some of Francorp's employees can be held liable by the IRS for payroll taxes that the company has not paid
What a mess!
What a mess!
FranCorp Hanky-Panky
Let me see if I have this straight.
Boroian personally cheats the government out of $542,000 in taxes between 1997 and 2000. And, if I remember from your Franchise Times column, he has been under investigation for this for how long -- a couple of years at least?
So while he is under investigation for tax fraud PERSONALLY, he apparently decides not to pay his CORPORATE employment taxes. So not only does he not pay $542,000 in personal taxes but he also decides not to pay more than a $706,000 in payroll taxes??? What is the total ith penalties -- $2 million and counting? And he does this WHILE HE IS UNDER INVESTIGATION by the IRS? This guy has brass ones.
OR ... he does not have the money to pay his taxes.
It seems to me that an employer takes money out of each employee's paycheck to fund payroll tax, right? So what -- he deducts that money from his employees checks and then decides not to pay it to the government?
I am amazed the IRS hasn't put a padlock on the doors already.
Payroll withholding / Sales Tax / Trust Funds
Monies which you as an employer are required to collect and remit to a government agency are not yours-- they are held in trust for the government, and you are a fiduciary.
If as a franchisee you collect sales tax and employee withholding but use that in your business operation, you may find that when time comes to send the money to the government... you don't have the money. That is very serious.
Smart franchisees will take the sales tax money and put it in a savings account or something similar that is harder to access than a checking account. That resists the temptation to raid the government kitty when you have a bad week and the rent is due.
Major payroll services such as PayChex will not only handle the payroll but will also make the deductions and send the money to the proper agencies. Any franchisee who does not use such a service is taking a grave risk.
One last thought: Be careful about who handles your remittances. If you use an in-house bookkeeper or your nephew who has just set up a payroll service down on Main Street, you take the risk that they may run off to the Bahamas and leave you holding the bag. Personally, I used PayChex and I would recommend that you use one of the major processors (ADP is another) unless you understand the risk of trust funds being embezzled.
BOROIAN
While I do not condemn tax evasion, it should be recognized that one person's troubles (or a company's for that matter) in the tax field do not diminish one bit the quality of their work. Also, it should be recognized that Boroian created the Franchise Consulting Industry back in the 70's when it was plagued by scoundrels in lawer´s disguise. He brought order to the industry and converted it into a formal business. To my knowledge, Francorp has never suggeted to its clients to evade taxes. The personal problems have not reflected in the high quality of their work. This whole business of beating Boroian is brought about by a group of losers that would never in their lives dream to become the next Francorp. I might have no personal admiration for Boroian, but I have a great respect for his professional achievements and the quality of his work.
And The Fact is
that although nonpayment of income taxes can be blamed on errors and ommissions, failure to pay withholding taxes is pretty simple. You HAVE to balance EVERY month, EVERY quarter, and EVERY year. I don't buy these 'excuses' and apparently the courts didn't either.
As far as relevance, aside from ethical issues it's about competency. Customers are supposed to believe that even if it were because of 'errors', this company that can't even keep one of the most basic bookkeeping records straight is in the position to offer guidance and consultation on something as complicated as franchising? Hmmmmmmmmm.
Rhino Super Center
ttp://www.rhinosupercenter.net/
Quality of Francorp services
Its a very good point - What is the quality of Francorps work? They sell the promise of franchising very well. They have been answering the same questions for many, many years,but do their clients sell franchises? When pushed on this subject Francorp is very elusive, they will quote "averages" but when asked specifically to provide actual numbers of franchises sold by their clients, they conveniently don't keep that kind of data.
Francorp is very much like many consulting firms they are going to tell you what you want to hear, produce some very good deliverables to substantiate what consulting they have done for you, and then you are largely on your own.
However, as a business owner, the burden is on you to make an educated decision about the firm you have chosen to consult with. Do you partner with a firm that cannot keep its own house in order? Do you trust that Francorp can provide you with what you need to know as far as franchising goes? Or, as the egregious behavior of Boroian suggests, are they just after your money?
The monies that Boroian spent without paying taxes came from his clients, and those funds didn't go back into the business they lined Boroians pockets. One visit to their Chicago office will tell you beyond a shadow of a doubt that Francorp is a financially struggling company, the place is literally falling apart around the employees. Now, Boroian can spend his money any way he likes, provided he pays his taxes, but the way he runs his business does not exactly strike confidence in his clients or the franchise industry.
I wouldn't trust Boroian or Francorp as far as I could throw them and while that may seem like Whack-a-mole rhetoric, it also serves to warn good, honest people that franchising is a tremendously comprehensive, costly, long term commitment - and if you are going to trust a consulting firm to take you down that road, you better do your homework.
Harsh words for a forum like Bluemaumau...maybe. But this industry needs a place where people who are new to franchising can get some real world information, and negotiate the landscape of "consulting" services that slimy characters like Boroian provide.
I wish to God I did my homework BEFORE I hired them.
Boroian's road to rehibilitation
Donald D. Boroian is now a convicted felon. He defrauded the U.S. Treasury.
Who owns the Treasury? We do! By pilfering Francorp corporate revenues, he thieved from the American taxpayer, us. You can dress this issue up, spin it, color it, and it all comes down to major larceny, and a lifelong federal felony conviction. This crushing weight of truth has deposed the self-described center of franchise gravity.
Left to run the consultancy while Boroian marched off under federal custody, Francorp employees also worked under the weight of hundreds of thousands of dollars in upaid payroll tax, which was undesclosed to clients. The tax was imposed by the government against the corporation for non-payment prior to Boroian's incarceration. Court records affirm this to be a fact.
By the way, Francorp was member in good standing in the IFA until the start of this year, even while Boroian is serving his sentence for tax fraud, and Francorp was still an exhibitor at the recent association sponsored IFE show in D.C, while the payrol tax cloud hung over them. Somethings never change.
Moreover, the Francorp staff is the IRS collection source of last resort for unpaid payroll tax if the government chooses to close this case. Should the company and officers not pay; the Service can lastly go after the individual employees for unpaid payroll tax. Can you imagine a knock at your front door one evening from a Special Agent serving official notice that you, as an individual, now owe the corporate payroll tax for yourself?
For that matter, can any of us visualize not paying your company payroll tax, while shamming potential clients into thinking you run a rock-solid, law abiding, honorable organization?
Given the opportunity to consider doing business with Boroian, and fortified with the knowldege of the felony, and court records of delinquent taxes, would potential clients seek to bond with Francorp?
That answer comes down to where one stands on disclosure, integrity, candor, and character. How tall would Boroian position himself against these primary pillars of social order?
When Boroian gains his freedom from the federal can, he needs to pay back what he took from the United States taxpayers. Sell real estate in FL, and IL, exotic cars, valuable personal property, stocks, bonds, CD's, whatever it takes, and get on a rigid payment schedule with the Department of the Treasury.
Freedom truly is not free, and don't cry America for Borian. When the Don rejoins society from a federal penal institution, it is up to him and his firm's officers to become responsible citizens. Facing statutory financial obligation, without excuses, subterfuge, and con, is his road to rehabilitation.
Boroian - A Significant Pattern
I would like to provide insight into the Borian debacle. My perspective should be enlightening.
By the way, out of professional courtesy, the week before he left for prison I called Don to ask if there was anything I could do. He informed me that business was great and that they would do over $9,000,000 in revenues this year alone. (OK, so why weren't the taxes paid????)
Well, for those of you who know me you know that integrity is something I cherish and believe you earn and cannot buy. I am also a believer that there are many, many businesses who are franchising who should not be. They have either been coerced to do so, by these types of consultants, or they have been misled as to what it really means and takes to be successful in franchising.
The former employee of Francorp is correct. Don never did nor does consulting. He does not know how to as he, himself, has never worked for a franchisor. He claims in his bio that he was an Exec. V.P. for a major food operation. The company which he is referring to is Chicken Unlimited, which at the time, was a public company. They also went bankrupt. As a publically traded company, however, they must provide 10-K statements. In those statements, during the time Boroiam said he was employed there, there is no mention of him as an employee, officer or director. His lifeling friend owned the company and was major shareholder.
Don's first company, Franchise Concepts also went bankrupt. I know this because I helped him build the business, with my franchise and operations background, from 1977 to 1979. When I left I filed a complaint with the Illiniois Department of Labor for over $60,000 in wages he owed me and never paid. He never did. He filed for bankruptcy and everyone lost, including the other employees.
He then started yet another consulting company. He brought in a school teacher to be President and, after 13 years, when that person did not get paid either, he started his own franchise consulting firm, which is still in business and sure operates just like Francorp.
Don is and always has been a great salesman and can dazzle you with his "footwork" and charm. I left, not only because I wasn't being paid to develop his business but when we left for lunch one day with a client, he instructed his secretary to copy everything in the clients' briefcase which was in the conference room. I left the next day. Shortly afterwards I started Franchise Architects.
People do not change and Don has not changed after all these years. He just finally got caught by someone or something willing to do something about his behavior.
Craig Slavin
Franchise Architects
Franchise Navigator
847-465-0111
Donald Bororian
I just happened upon this site while checking to see if Don Bororian had been released from prison, and as I read through the entries, I felt great sadness. First, I worked for Francorp for a short period last year as a temp, and while I agree that he could be overly emotional and demanding, I don't believe this has anything to do with why he is in prison or whether or not he was fair to his clients.
It is my understanding that Bororian pled guilty (took responsibility) for inaccurate items on his personal tax returns. It was later learned that the company failed to pay employee witholdings on time. It is COMMON practice for many small businesses to use employee witholdings for day to day operation of the business. Is it right? No. Is Bororian paying for this and his personal income tax issues? Yes.
To my knowledge Bororian did not steal from his clients, although for those of you who claim to have been "burned" by him, you're right - You should have done your homework. It's amazing how once something negative happens to an individual, people come out of the woodworks with their own stories of woe. If you're in business (and had you don't business with Francorp, you either owned a business or were in the market to buy one), then you most definitely should have investigated the business practices of the company.
As for his personal assets, it is also my understanding that the IRS has 2 years to go after personal assets to help make good on monies owed.
I think Bororian is paying dearly for whatever it is he did, and regardless of what type of prison he's in, he still does not have his freedom, and that in itself is punishment. If you can't leave when you get ready, you're in prison, no matter what kind or what level of security it is.
Francorp-Former Employee
This has nothing to do regarding Donald's tax problems or imprisonment. I'm simply a former employee of Francorp and was just talking to a friend about the horror of working there. I told her I couldn't imagine them still being in business and when I googled them, I found your site. I worked with the sales team under his daughter's direction. Alison was Vice President and exactly like him. Though may she now RIP. I have never worked for a company since that allowed people to scream and belittle you the way they did there. If you smoked, you were terrified to get caught even outside of the premises in your car on the way home from work. Smoking is definitely bad but for a company to threaten a person's job because of that choice, is worse. The head of HR at the time, Ann something or another, was part of the whack jobs that worked there. She had all of the support staff on pins and needles fearful of how we answered the telephone lines, where we walked in the hallway, getting caught smoking in the car, what we wore, our hair, if something was left out of place, etc. We were young girls, I was around 23 at the time of my employment there and will never forget how poorly we were treated there. I had the best professional training around to boot so I didn't need to be told or reminded how to act professionally, particularly in that type of environment. It is almost comical now that I look back. She was under the direction of Donald and Alison which probably lead her to be the way she was so I can cut her a little slack. Too bad I was so wet behind the ears because knowing what I know now, I would have rallied the staff and we'd of shut them down a long time ago. Talk about a hostile work environment and harassment issues! There were a lot of good people that worked there too that deserved a lot more than the stress of that place. I hope they too jumped ship. Thank you for having this blog, it was a pleasure to reaffirm that karma truly exists.
Francorp-South beach Naturals-Doctors Wellness centre
http://www.wellnesscenterfranchise.com/index.php?pid=5> (see francorp Letter)
http://www.miami-dadeclerk.com/public-records/image.asp?page=1&cfn_master_id=19546188#image (Francorp)
Check out Francorp/ new flim flam Doctors Wellness Centre-
http://www.wellnesscenterfranchise.com/index.php?pid=5>
cleverly disguised MLM- no franchise docs, no registration as business opp w states.
http://w3.health.state.ny.us/opmc/factions.nsf/0/9ba82acde24c573185256a4a0047d778/$FILE/ATTT3R8J/lc159557.pdf
Dr Imam Munner (Dr's Wellness Centre)
Grow Up
Sounds to me like you were fresh out of college and not formerly prepared for working in a professional environment where you were forbidden to wear your pajamas to work or smell like a pack of cigarettes. The simple fact that they did not want you smoking near the facility seems to be the biggest problem you had. Alison was a dear friend of mine from grade school and not only do I attest to her professionalism but how dare you even reference her when you are whining about not being able to smoke on the job.
Grow Up Cont.
When has Francorp ever been a professional environment? Swearing at employees at the top of your lungs, Using employees 401k contributions and spending the monies on company expenses - instead of applying them to the share plan. Defrauding hundreds and hundreds of hardworking people into dreams of multi unit success, not to mention tax evasion. Complete fabrication of your professional pedigree..the list goes on and on and on.
I mean smoking on the job is just one example and hardly one to hang your hat on, but come on..this is a company that is led by morally vacant people.
What is the latest "ethical question" at Francorp?
What is the latest ethical question there?
Just curious.
IRS
If the IRS shuts down Francorp they will never ever get paid. They know better than that. Francorp is obviously doing something right in Boroian's absence if they are doing as well as is suggested above.
Hall of Fame or Shame?
Guest:
I'm not sure if you meant condemn or condone. I do not condone, tax evasion, however I've known many who have gotten into trouble based on the advice of their tax advisors.
I do however agree with your point that his personal tax issuses should not totally distract from the good which he's done. It's similar to the whole Pete Rose deal, should he be banned from baseball, probably! Should his induction into the Baseball Hall of Fame be based on his accomplishments on the field, or for his misdeeds off the field? I think Baseball Hall of Fame, Yes! Should he also be inducted into the Hall of Shame for his off the field behavior, Yes!
Where Borian's debt has been repaid both monetarily and with 'time served'; I can not help but think his debt to society has been paid and that his future success or failure, and that of FranCorp, should be left to be judged by his future actions and by the wallets of his clients and not by those of us who have very few of the facts.
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
Why CEO Deception Is Important
"one person's troubles (or a company's for that matter) in the tax field do not diminish one bit the quality of their work." - Guest
Unfortunately, it does. Accounting and tax fraud is big news. Just look at Enron's Kenneth Lay, Jeff Skilling, Tyco's Dennis Kozlowski and WorldCom's Bernie Ebbers if you doubt that their personal misdeeds do not take away from the quality of their accomplishments or their corporation's work. You may have great respect for those individuals and their personal accomplishments in rising to be CEOs of such corporations, no easy feat, but their deception had a great cost on them, their clients, their stakeholders and their employees. And thank goodness the Wall Street Journal and others covered the news.
You have to ask why the law and the market came down so hard on those individuals and then you'll begin to understand why news of Boroian's incarceration is important to franchising. It does not help the industry in the long-run by sweeping such news under the rug. And Francorp has a host of issues to deal with now because of the continuing misdeeds of its founder.
Transparent Tom
Francorp's Troubles
Let's be clear. These are not just personal tax problems of Donald Boroian, although personal problems of a CEO can certainly be newsworthy in itself.
Francorp itself did not pay payroll taxes.
Francorp's Troubles
Take it from me, a former Francorp employee, Don Boroian hasn't been a franchise consultant for years. What he is is a franchise consulting services salesman. During my time there, he did very little actual "consulting".
To the person who surmised that Francorp had no money to pay its taxes, I say that is a very astute abservation.
Francorp's biggest obstacle in the future will be the influence of the grandfather on the grandson. Boroian's grandson is the president now, and he seems to be very happy to follow in his grandfather's footsteps.
Guest: Great Post!
Guest:
Your Post ABSOLUTELY IS NOT a 'Whack-A-Mole' post. You expressed your experiences and observations clearly and concisley. No name calling. No Stereotyping. No melodrama.
You acknowledged the business owners ultimate responsibility to make a decission. You acknowledged Boroian's right to spend his money as he sees fit, with legal limitations.
You're exactly right when you say "...franchising is a tremendously comprehensive, costly, long term commtiment - and if you are going to trust a consulting firm to take you down that road, you better do your homework".
Guest, GREAT POST!!!
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
Freedom truly is not free --Let's charge for UFOC's
If only government were as proactive in punishing those corporate criminals who steal from the people directly as they are in punisihing those who steal indirectly from the people by not paying their taxes, we would be safer in all of the avenues of commerce in this country.
LET THE BUYER BEWARE ---The Government Radar is so often in the shop for repairs. Why doesn't government charge both the franchisor and the prospective franchisee a fee for the UFOC? By charging a fee, government would indicate that the UFOC was something of value and that the franchisors would then be responsible for disclosing information that would be of value to the franchisee; and the government would be responsible for providing something of value to be disclosed to the franchisee in return for the fee that was charged?
Give me your thoughts, Dale!
Don's Road to Rehab?!
When the Don rejoins society from a federal penal institution, it is up to him and his firm's officers to become responsible citizens. Facing statutory financial obligation, without excuses, subterfuge, and con, is his road to rehabilitation.
Guest, wonderful sentiment, but you just made me choke on my pate. You obviously do not understand how those of us with the Millionaire Mindset think. The Don is not coming back with his tail between his legs. To the contrary! He proved that he can survive and continue to thrive despite the best they could throw at him. In fact, he probably did better in the past couple of years because being the underdog got his adrenaline up. We love the impossible odds... it's boredom that kills us.
The Don will also come back with a vengeance because his clients have confirmed what he already suspected: Entrepreneurs will overlook anything, and find their own justification for overlooking anything, if you tell them that their unique pizza crust will surely change the world.
See you on the veranda!
Millionaire Richard Quick, Esq.
Website: FranWorst.com
Rehabilitation?
Craig,
Thank you for your extremely important contribution. This is the type of industry voice that I learned from in the '70s.
Times, unfortunately, change and so do industries.
Les Stewart, MBA :: industry analyst
www.cafo.net :: FranchiseFool :: the Wise say No
Hear the Boroian clock a tickin
This post is a remarkable and dastardly insightful peek into an obviously consistent, spirtless fellow, that Don Boroian. We can clearly see what Francorp actually thinks about ethical client responsibility. Does anyone believe that Boroian will answer for tomorrow?
That gosh awful clock has a way of leveling the field. We all grow old as the world becomes the size that we make it that day, based on what we did yesterday.
Bio for Sale
Thanks for the insight on Bororian. Just goes to show that you can't put your faith in an impressive bio that may hide the true nature of the man. He sounds like a sociopath and a lot of them make it to the top of the business world.
Boroian, Agreements, Transfers, Exit,
I Googled 'Don Boroian' and inadvertently omitted the seconcd 'o' and as a result came up with but 1 result. Now I don't really want to 'Plug' this particular concept, however the result was rather funny, based on recent discussions here at Bluemaumau.
CLICK HERE and then read the entire page and I think you'll see what I mean. For example, From Their Agreement:
6.4 Transfer By Death
It's very interesting stuff.
The photo is of, none other than, Don Boroian. I thought those who have never seen the man -- might want to have a face to associate with their discussion.
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
Francorp
As another former employee, I can readily attest to your comments on the behavior of Don Boroian. The only thing you needed to have to qualify as a "fabulous franchise opportunity" was the money to pay for Francorp's program, that is it. They would wow you with terms like,"fragmented marketplace" and "a proven system", but Francorp had only one concern, can you afford the price tag. If your business had enough gross sales, typically around $100k, they were all over you to begin your program.
On their brochure they list offices in New York, Los Angeles, Florida but none of these offices exist. Boroian would go into long discussions with clients about his days in "corporate management" he would often begin seminars by telling attendees that he has, "taken companies public" all of it was a complete sham. Once they had your money, they didn't care if you ever sold a franchise. It's no surprise that most of their clients struggled to even finish there contracted program with Francorp, nevermind sell franchises. Clients often fell off after only a few components of their program were pieced together, surrendering thousands of dollars. When frustrated clients would call in, as another poster mentioned, they were just ignored.
Francorp was such a difficult and hostile environment to work in especially for us women. Boroian could be very cruel, often screaming at staff at the top of his lungs, completely unable to control his emotions. It was the worst professional environment I ever worked in and it was very sad to see the the trail of broken dreams that was left of hard working business people who were taken in by Boroians web. I am glad I heard about this forum from another of my former co-workers. It is about time that a lot of this is finally coming to the surface.
Mass Exodus at Francorp
The mass exodus at Francorp continues. Three more peoeple have recently given notice to the struggling firm. One was a fairly recent hire, but the other two were seasoned consultants and very pivotal employees to the business. I wonder how much of it has to do with the looming civil suit against Boroian? One thing that has always been consistent about Francorp, is that they have no money. They are perpetually broke, and their obvious mismanagement of their funds is not a good omen in the face of such a daunting lawsuit. It will be interesting to see what transpires. I know that several other key employees are agressively looking for other employment opportunities as well, but no surprise there. The turnover at Francorp is always very,very high.
Re: Francorp-South beach Naturals-Doctors Wellness centre
The testimonial letter from Boroian is dated only a few weeks before he reported to prison. Now that is one helluva an endorsement.
Re: Francorp-South beach Naturals-Doctors Wellness centre
Another great Francorp client. Be sure to ask your senior consultant about South Beach Naturals and the civil suit filed by the franchisees against the owner, Carol Brothers. Francorp was included as a defendant in the suit as well.
Re: Francorp-Former Employee
Well, I guess some things never change....Boroian is still a bullying, mean spirited, shallow person and Francorp is still a horrible place to work. Since Boroian's release from prison in May, eight employees have either quit or been fired for petty reasons, although one did return...poor soul. That constitutes 20% of the firm's staff. Those who quit could not get out fast enough and those who were terminated are thankful to have escaped a bad man and a barely solvent firm, even if it was not ultimately their decision. Boroian's 'right hand' is now his grandson, Alison's nephew. All in all he is a good guy. However, from time to time he tries to spew the same fire and brimstone as his grandfather. That does not fly with the staff because he garners very little respect at the firm because of his age, suspect work ethic, and the fact that he is viewed as having a silver spoon in his mouth, a belief furthered by his huge salary ($200K/year...thanks grandpa). Now, like then, there are good people working at Francorp who do not deserve the BS. Hopefully they will find their future elsewhere.
Francorp, Doing Something "RIGHT" to Attract Customers?
"Francorp is obviously doing something right in Boroian's absence if they are doing as well as is suggested above."
Francorp is doing something to attract customers - like hiding the truth. According to the news, the company tells clients the CEO is on "sabbatical". The small detail that Boroian is on vacation at Duluth Federal Prison seems unimportant. Keeping the old online bio of Francorp's CEO, Chairman and Founder is also a nice touch too for clients to see.
IRS Is Wise
This guest is right. The IRS is getting paid and they will want to accomodate Francorp so that they are paid as opposed to liquidating the company to get pennies on the dollar - unless they think the whole deck of cards is about to come tumbling down.
And just in case the IRS is watching, I just want to add that I think the IRS is incredibly wise.
Frankman
P.S. Dear IRS: My tax filings will be in shortly. You'll see everything is in order for that big fat refund.
Francorp Better Off Without Boroian
I suspect what Francorp is doing right is that their CEO is gone. Unfortunately, Francorp's future brings Boroian back and a whirlwind of troubles accompanying him, including the IRS who will then shift focus to money owed it by Francorp.
Francorp doing the right thing?
Saying Francorp must be doing something right is like saying that Al Queda must be doing something right because they keep recruiting suicide bombers.
If they are lying to their customers and not paying taxes, is that right?
Oh! Get Off of It, Dale!
While he is serving time in the "country club" for corporate criminals and conducting business, the payroll taxes that were misappropriated, etc... will continue to cause problems for the employees of his firm.
Apparently, there were no mitigating circumstances under the law and why, therefore, should his clients continue to be misled about his essential character if his actions indicate that he is a bad charactor. While it would be interesting to know the facts and the circumstances that resulted in the crimes against his company and against the people, his "time served" does not forgive the lapse of truth in not revealing his crimes to his clients and prospective clients.
They could have, at least, eliminated the impressive "bio", and said nothing to new clients who might have found our from sites like Blue Mau Mau or the newspapers but they chose to be dishonest and try to hide his criminal offenses from clients who may be at greater risk by doing business with him because of the impact on his business of his crimes.
It would be interesting to know how much of Mr. Boroian's personal fortune and/or assets were saved from seizure under the law and whether or not he is still reaping profits from FranCorp.
To suggest that attorneys/CPA's cheat without their client's knowledge is disingenuous, Somehow Mr. Bororian was into BS and believed he could succeed in evading his taxes and breaking the law.
Tom: Are We Ready?
Tom:
Each of the examples that you provided are very good and have been well covered. However, each is different from the other. I do not believe that the crimes of Dennis Kozlowski quite equal up to the crimes of the others. Also each of your examples involve public companies that are owned by a large group of stockholders who have but a small vote individually and in my mind that is very different than the case of Boroian and a private company.
As previously stated, those stories did capture great media attention. In the case of Enron...here's a few facts which did not receive as much coverage (my political statement of the day, surely to offend someone).
Scandalous!! BUT...the president under whom all this happened WASN'T: George W. Bush.
SURPRISE It was President Bill Clinton!
ARE WE READY FOR MRS. CLINTON?
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
A good distinction!
Guest:
That is a very good distinction. Failure to pay payroll taxes on behalf of the business entity and the personal tax matters of an officer of the entity should be seperated.
With that said, and with very little information to work with, I notice that the documentation provided is related to Self Employed Area 4. So is it possible that these are payroll taxes based which should be paid by the entity for compensation not reported by Boroian, because it was inaccurately determined that it was not 'income' and therefore the entity did not withhold or pay the tax?
Or could this non-paid employee tax be the result of an 'independent contractor' interpretation which was later determined to be an employee/employer arangement?
Who knows? Perhaps someone with more insight directly to the matter or one of our lawyer/CPA types can chime in.
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
Inspired by Bororian, Francorp
Don Bororian and Fran Corp have helped make franchising what it is today. He is a great man and an inspiration to entrepreneurs everywhere. The naysayers are just jealous that they don't have his cahones and his commitment to wealthbuilding.
I find it refreshing that his Millionaire Mindset and can-do attitude cannot be constrained by prison walls!
See you on the veranda!
Millionaire Richard Quick, Esq.
PS I believe Don coined the slogan "Be in business BY yourself but not FOR yourself." How many of you have made that kind of contribution to the business vernacular?
Website: FranWorst.com
franworst@yahoo.com
February 23, 1992
The above date in Francorp history is important for two reasons:
1) Francorp employees had the pleasure of reading about their company's owner/founder's 13 TV sets, with excerpts below....
Fine tuning Designers tackle the problem of how to ease a TV gracefully into the decor of a room
by Ellie Sandler, in the Chicago Tribune (2/23/92)
A TV set will usually occupy a significant position in a home where a lot of TV-watching goes on, according to Robert Zitter, a psychologist at Christ Hospital in Oak Lawn. "Cues have a powerful impact on your behavior. So smeone with many TVs throughout the house is certainly going to watch more TV than smeone who restricts it to one room."
For Donald and Sally Boroian, there's nothing coy about their fondness for TV. With all five kids married and out of the house, the Boroians relocated from a large home to a three-bedroom townhouse where nearly every room-even the utility room-houses a color television. But they reject the notion that they suffer from a textbook case of couch potato-itis.
Donald starts his day with a half-hour cycle of CNN. In their indulgent bathroom suite, he lathers up before a built-in, 13-inch TV in a mirrored alcove. In the toilet area is another TV, for more, well, private viewing. A set of remote-control earphones allows Donald to hear the TV without waking Sally in the bedroom next door.
***
2)...while they we're being told by their supervisors that their paychecks would not be available as scheduled...a situation that
has existed on and off for 15 years now.
As another former Francorp employee, the most remarkable thing about Mr. Boroian is the very effective PR machine he has built around himself and the company...sheltering a man who had a fantastic idea - franchise services under one roof - but was done in by his need to feed the demands of his lifestyle.
Mr. Blue Mau Mau ---Please publish Sparks Article UPS
Will you please publish Janet Sparks Article ""Franchisees plan to fight UPS on mandatory vendor program"!
Since you asked!
Well since you asked! Two thoughts quickly come to mind.
1st: As is evident by many discussions on Bluemaumau the simple fact that a fee is charged does not in and of itself translate into something of value being delivered.
2nd: I pay many governmental fees for which I receive little or nothing of value from.
So in conclusion my thoughts are that it would be more revenue for the government, more expense for you and I, and status quo! But that's just my thoughts, since you asked!
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
Do birds of a feather truly flock... or hang together?
Do you actually assume that Boroian and Francorp's clients know about their corporate tax obligation, and his felony conviction Richard "the Millionaire" Quick?
Counselor, do you really think that Francorp disclosed anything with regard to their corporate cheating of our governemnt? If your definition holds, then birds of a feather do flock... You are a crusty fellow if you truly believe that all Entrepreneurs choose to hang with the likes of Boroian. Light the arena with sun, let the facts be listed and posted, and then let us see if the clients beat a path to the worn hollows of Francorp.
Than you for Truth about Boroian
So often employees are thrown into situations where they know their employer is dishonest and they dislike doing the things they have to do to earn their salaries because they believe some of these actions are wrong.
I know it gives you pleasure to reveal what kind of a man Boroian is and to bring the truth to the surface.
Thank you for joining "the whistle" chorus and exposing the man behind the impressive Bio.
Now What, Francorp?!?!??
Who has left now? Can you give me some more information?
Francorp won't tell me anything and frankly this news is cause for concern.
"Would Be" Franchisors should avoid Francorp
There are number of experienced law firms and consultants to choose from that can serve "would be" and nascent franchisor's needs. There is no point in risking your franchise offering by using Francorp.
Inspired by Boroian??
Millionaire Richard Quick, Esq.
PS I believe Don coined the slogan "Be in business BY yourself but not FOR yourself." How many of you have made that kind of contribution to the business vernacular?
You must be kidding? Who else was Boroian in business for but himself? Not his clients, Not his employees. I got burned by Boroian and Francorp too. I should have done my homework, but I was stupid and acted irresponsibly. I sold a vacation home to franchise my business. Francorp provided some paperwork and manuals but I needed consulting and guidance throughout the process. At one point I had 54 phone calls into their operating officer / project manager without a response. Once they had my money they just stonewalled us they just shut us out. I tried to get the franchise going on my own but it was to expensive and difficult to do that and run the business at the same time.
I take full responsibilty for my actions and I only have myself to blame for not opening my eyes and luckily our business managed to survive and prosper, but Boroian definitely saw me coming and took full advantage of us. I mean the levels that they went to avoid helping us through the franchising process were unbelievable. The other thing that really struck me was that each time I visted Boroian would always make the point that Francorp was a big happy family, but when you looked around the office you never saw so many "happy" people that forgot to notify their faces that they were happy. He belongs in prison, thats for sure